The morning rush at Café Bicyclette in Edmonton looks much like any other bustling coffee shop, but behind the counter, owner Daniel Cournoyer is navigating challenges far beyond the daily grind. Like thousands of small business owners across Canada, Cournoyer faces the daunting task of balancing environmental aspirations with financial realities in the pursuit of net-zero emissions.
“We invested in energy-efficient equipment and compostable packaging, but the costs add up quickly,” Cournoyer explains, glancing at his latest utility bill. “There are days I wonder if we can afford to be as green as we want to be.“
This sentiment echoes throughout Canada’s small business community, which represents 98% of all Canadian businesses according to Statistics Canada. While large corporations often command headlines with ambitious climate commitments, the nation’s 1.2 million small businesses face a steeper climb toward sustainability with significantly fewer resources.
The federal government’s target to achieve net-zero emissions by 2050 has created both opportunity and anxiety among small business owners. Recent polling by the Canadian Federation of Independent Business (CFIB) reveals that 71% of small businesses consider environmental sustainability important, yet 82% cite cost as the primary barrier to implementing green initiatives.
“We’re seeing a troubling disconnect between policy expectations and on-the-ground support,” explains Laura Jones, CFIB Executive Vice-President. “Small businesses want to participate in the green transition, but many are still recovering from pandemic losses and now facing inflation pressures.”
For Toronto-based retail shop owner Maya Sethuraman, navigating sustainability feels like “death by a thousand cuts.” Her small clothing boutique has attempted to reduce its carbon footprint by sourcing locally and minimizing packaging, but she’s found the certification processes prohibitively expensive.
“I looked into becoming carbon neutral certified, but the consulting fees alone would have wiped out three months of profit,” Sethuraman says. “We’re making changes where we can, but without affordable guidance, it’s mostly guesswork.”
Climate policy experts acknowledge this implementation gap. Dr. Catherine McKenna, former Minister of Environment and Climate Change, now heading the UN’s High-Level Expert Group on Net-Zero Commitments, notes that small businesses need targeted support.
“The challenge isn’t just financial—it’s also about knowledge and capacity,” McKenna states. “Many small businesses don’t have sustainability departments or specialists who understand carbon accounting or efficiency upgrades.“
Some municipalities have recognized this gap and launched initiatives to help. Vancouver’s Climate Smart program and Toronto’s Green Economy Hub offer subsidized training and certification. Meanwhile, financial institutions including RBC and TD have created specialized loan programs for small business sustainability projects, though critics argue these programs remain underutilized due to awareness gaps and application complexity.
The federal government’s Canada Greener Homes Loan program and various provincial rebates primarily target residential properties, leaving commercial small businesses with fewer accessible options. The recent federal budget included promises for expanded small business sustainability funding, but implementation timelines remain unclear.
For rural businesses, the challenges multiply. Jeff Horvath, who runs a small manufacturing operation in northern Ontario, faces limited access to renewable energy options and sustainable supply chains.
“The big companies get direct support and attention from government programs,” Horvath observes. “Meanwhile, we’re expected to make the same transitions with a fraction of the resources and almost no tailored guidance.”
Energy analysts point to promising developments despite these challenges. The cost of solar installations has dropped 89% since 2010, making renewable energy increasingly viable for small operations. Technology solutions like smart thermostats and energy management systems are becoming more affordable and user-friendly.
Community approaches may offer one path forward. In Montreal, a collective of small businesses in the Mile End neighborhood pooled resources to hire a shared sustainability consultant and negotiate better rates on green renovations. This collaborative model has since spread to other business improvement areas across Quebec.
“When we stopped competing and started collaborating on sustainability, we found efficiencies none of us could achieve alone,” explains collective founder Marie Lapointe. “It’s transformed how we approach not just environmental challenges but business generally.”
As Canada continues its climate commitment journey, the role of small businesses will be crucial to meeting national targets. With small enterprises accounting for approximately 25% of Canada’s total business sector emissions according to Environment and Climate Change Canada, their collective impact is significant.
The path to reconciling environmental goals with small business realities remains challenging, but potentially transformative. As Canadian policymakers refine climate strategies, will they develop the scaled solutions and accessible support systems that allow small businesses to thrive in a net-zero future rather than merely survive the transition?
